Miliband's welfare plan deserves the left's support

His plan to reward those in work is a reaffirmation of the founding principles of the welfare state.

Despite the headlines it has attracted this morning, Ed Miliband's plan to give workers priority over the jobless for social housing is not a new one. In the fine speech he delivered on responsibility in June, Miliband promised that Labour would be "a party that rewards contribution, not worklessness." He cited the approach of Manchester which, as well as helping the most vulnerable, gives priority to those who contribute the most to their communities, be it through volunteering or employment, and those who have been good tenants in the past.

In his speech at 2:15pm today, he will say: "The hard truth is that we still have a system where reward for work is not high enough, where benefits are too easy to come by for those who abuse the system and don't work for those who do the right thing." His ambition is for the entire country to emulate the Manchester model: "Our first duty should be to help the person who shows responsibility, and I say every council should recognise the contribution people are making."

Miliband's bid to put the contributory principle back at the heart of the welfare state hasn't been welcomed by all on the left. It is viewed by some as a reassertion of the crude distinction between the deserving and the undeserving poor. Buth both Lloyd George and Beveridge regarded the contributory principle as essential to preserve fairness, increase work incentives and maintain public support for the welfare state. Neither believed in a "take what you can" approach. As Beveridge put it in his 1942 report: "The correlative of the state's undertaking to ensure adequate benefit for unavoidable interruption of earnings is enforcement of the citizen's obligation to seek and accept all reasonable opportunities of work." (Although, of course, he assumed a system of full employment, hence the title of his second report in 1944: Full Employment in a Free Society.)

It's important to emphasise that Miliband isn't calling for the state to relinquish its duty to protect the poorest. Fears of workless families being evicted from their homes are wide of the mark. But he is proposing a radical reordering of our social contract. He recognises that an approach that focuses on need alone risks reducing the welfare state to an American-style safety net for the poorest. Miliband should now go further and take up James Purnell's proposal to extend the contributory principle to pension provision. Those who pay in should receive a higher pension than those who do not.

Liam Byrne, the shadow work and pensions secretary, recently observed that "Labour is behind on welfare reform. It must get back in front". Miliband's vision of a system that rewards those who give the most, rather than simply those who need the most, offers one way to do so.

George Eaton is political editor of the New Statesman.

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A global marketplace: the internet represents exporting’s biggest opportunity

The advent of the internet age has made the whole world a single marketplace. Selling goods online through digital means offers British businesses huge opportunities for international growth. The UK was one of the earliest adopters of online retail platforms, and UK online sales revenues are growing at around 20 per cent each year, not just driving wider economic growth, but promoting the British brand to an enthusiastic audience.

Global e-commerce turnover grew at a similar rate in 2014-15 to over $2.2trln. The Asia-Pacific region, for example, is embracing e-marketplaces with 28 per cent growth in 2015 to over $1trln of sales. This demonstrates the massive opportunities for UK exporters to sell their goods more easily to the world’s largest consumer markets. My department, the Department for International Trade, is committed to being a leader in promoting these opportunities. We are supporting UK businesses in identifying these markets, and are providing access to services and support to exploit this dramatic growth in digital commerce.

With the UK leading innovation, it is one of the responsibilities of government to demonstrate just what can be done. My department is investing more in digital services to reach and support many more businesses, and last November we launched our new digital trade hub: www.great.gov.uk. Working with partners such as Lloyds Banking Group, the new site will make it easier for UK businesses to access overseas business opportunities and to take those first steps to exporting.

The ‘Selling Online Overseas Tool’ within the hub was launched in collaboration with 37 e-marketplaces including Amazon and Rakuten, who collectively represent over 2bn online consumers across the globe. The first government service of its kind, the tool allows UK exporters to apply to some of the world’s leading overseas e-marketplaces in order to sell their products to customers they otherwise would not have reached. Companies can also access thousands of pounds’ worth of discounts, including waived commission and special marketing packages, created exclusively for Department for International Trade clients and the e-exporting programme team plans to deliver additional online promotions with some of the world’s leading e-marketplaces across priority markets.

We are also working with over 50 private sector partners to promote our Exporting is GREAT campaign, and to support the development and launch of our digital trade platform. The government’s Exporting is GREAT campaign is targeting potential partners across the world as our export trade hub launches in key international markets to open direct export opportunities for UK businesses. Overseas buyers will now be able to access our new ‘Find a Supplier’ service on the website which will match them with exporters across the UK who have created profiles and will be able to meet their needs.

With Lloyds in particular we are pleased that our partnership last year helped over 6,000 UK businesses to start trading overseas, and are proud of our association with the International Trade Portal. Digital marketplaces have revolutionised retail in the UK, and are now connecting consumers across the world. UK businesses need to seize this opportunity to offer their products to potentially billions of buyers and we, along with partners like Lloyds, will do all we can to help them do just that.

Taken from the New Statesman roundtable supplement Going Digital, Going Global: How digital skills can help any business trade internationally

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